Permalink Submitted by Alan Spross on Thu, 2008-11-06 18:51
The reason that the IRA contribution limits did not increase for 2009:
1) Basic limit is inflation adjusted, but only in $500 increments and we just had an increase for 2008. It would have taken 10% to trigger an adjustment to 5,500 for 2009. Now the inflation is subsiding, it is not a sure bet that 2010 will have an increase either.
2) The catch up contribution for IRAs (only) is not inflation adjusted. It will take Congressional action to change the current $1,000 limit.
Permalink Submitted by Jose Morales on Thu, 2008-11-06 18:37
Here are the 2009 COLAs for IRAs, SEPs, and SIMPLEs: [url=http://www.complianceheadquarters.com/Documents/COLA%20Tables.pdf%5D2009 COLA[/url]
Permalink Submitted by Alan Spross on Thu, 2008-11-06 18:51
The reason that the IRA contribution limits did not increase for 2009:
1) Basic limit is inflation adjusted, but only in $500 increments and we just had an increase for 2008. It would have taken 10% to trigger an adjustment to 5,500 for 2009. Now the inflation is subsiding, it is not a sure bet that 2010 will have an increase either.
2) The catch up contribution for IRAs (only) is not inflation adjusted. It will take Congressional action to change the current $1,000 limit.